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What is passive income? Passive income is income from trade or business activities in which you do not materially or actively participate in generating that income. For example, your day job generates your active income since you actively participate or work for that income. If you have investments on stocks or shares or bonds that actually earn profit, then that's your passive income since you didn't actually work for the profit. It was your money doing the work for you. Why is passive income good? The most obvious reason why passive income is good: you're not working actively to earn it. You do some work (e.g., invest in stocks) and that earns you income while you're sleeping. It's supplemental income to your main income source. Who wouldn't want to earn extra income? Why earn online income? In my example above, I mentioned investing in stocks as a passive income generator. But one thing to consider about investing in stocks is: you need money to earn money. To earn more money, you need to invest more money. Why? An investment of 100 dollars earning at 50% would earn 50 dollars. If you want to earn 500USD you need to invest 1000USD. The higher the target the earning, the higher the investment. But the risk of losing money in stocks investment is also high, your initial investment of can be lost overnight when the value of the stocks go down. Imagine, you invested 100 dollars then the value of the stocks you invested in goes down by 10%: you end up losing 10 dollars. Stock prices volatility (instability) is a hard reality of investing on stocks. Now let's look at earning online income, specifically from affiliate marketing. To go into affiliate marketing can cost you money, but the beauty of it is, you can also do it for free. The basic strategies of affiliate marketing actually doesn't cost you anything, and you can use the free services in the internet, like blogging and article writing, to promote and market. How can something free earn you something? What's the catch? Well the catch is, you have to invest a lot of efforts initially. Your initial effort will then produce income for you, while you sleep, or while you do your primary work or active income. Another benefit of earning online income is that it can be exponential. You may earn small change in the beginning but this will grow and accumulate over time as your marketing strategy propagate across the Internet. In Short Having an active income is a good way to sustain a regular and consistent income. But if you find yourself looking for additional income, consider learning passive income sources like how to earn online income. You can try affiliate marketing for free, removing the need to invest a lot of money just to earn passive income. All you need is do is dedicate some time and focus regular effort, and


soon you'll see the income trickle in.

Russel C. Patalinghog, or Russel CP, is a full-time technical writer, a multimedia artist and a photographer. He is currently researching and testing online income opportunities. Go to http://earnonlinenow.net/ to know what work from home info product he is reviewing now.

Article Source: http://EzineArticles.com/?expert=Russel_C._Patalinghog

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Making Passive Income Online